Amman (ILO News) – Governments could lift millions out of poverty by adopting more coherent and inclusive minimum wage setting policies, the ILO will tell participants at the “Regional Tripartite Meeting on Wage Policies in the Arab Countries" which opens in Amman on Monday (September 17). According to the Global Wage Report 2010/2011, the financial and economic crisis cut global wage growth by half in 2008 and 2009; affecting workers in both the formal and informal economy, including the Middle East and North Africa region's estimated 75 million paid employees. Rising inequality, stalled productivity and low incomes have increased social tensions in several Arab countries, and been significant factors in the recent wave of uprisings. “The minimum wage is an important policy tool for alleviating poverty and promoting social stability," said Nada al-Nashif, ILO Regional Director for the Arab States. “It ensures that the socio-economic conditions of workers and their families meet the minimum requirements for a life of dignity. The increasing vulnerability of workers as a result of the global financial and economic crisis makes the need for sound wage-setting policies all the more pressing." Although 90 per cent of ILO member states have a minimum wage system in place, not all Arab countries have developed wage determination mechanisms. Organized under the patronage of the Minister of Labour of Jordan Dr Atef Odibat, the four-day regional workshop will engage workers, employers and government representatives from nine Arab countries on the nature of wage policies, strategies for minimum wage setting and collective bargaining, new trends and good practices, elements of policy coherence, and the role of social dialogue for sound wage policy design. “Jordan is the only Arab country, and among nine globally, selected to pilot the Global Jobs Pact, which includes policies aimed at promoting jobs and protecting people," said Minister Odibat. “Our efforts to develop fairer wage policies reflect Jordan's commitment to advancing the Decent Work agenda." Minimum wage fixing policies must balance social factors – including the needs of workers and their families, cost of living, the general level of wages and levels of social security benefits – with economic ones – such as the capacity of enterprises to pay, employment rates, productivity and economic development. They aim to provide all poorly paid workers with a minimum level of income protection for their work.
